Access to the internet is contributing to the rapid expansion of the e-commerce industry all over the world. You can now buy electronics, furniture, clothes, and other accessories online and receive them in a matter of days. This has made e-commerce a trend in every corner of the globe. Shopping on-line is convenient and is not time-consuming. As long as you have internet connectivity, you can buy anything online. 

You can also sell your products anywhere in the world by setting up an eCommerce shop in places such as Dubai. However, you need to get an e-commerce license before setting up the store. Here are things to know about getting an e commerce license dubai.

1. You must come up with the business legal structure

The eCommerce sector in Dubai is valued at $10billion. Unfortunately, you will not be able to tap into this market unless you have a business that is legally incorporated. The incorporation process is easy but you must follow the laid down procedures. First, you need to come up with a structure of the business you want to run. You may choose to start a sole proprietorship, a limited company, or franchise. But currently, the most dominant e-commerce stores are branches of limited liability companies. 

2. You should choose the location 

By location, we refer to the place in Dubai where you wish to get your license. Typically, there are two zones: the mainland and the free zone areas. If you choose to set your business in the free zone, you must own100% of the business. But if you choose the mainland as your zone, you need a local sponsor who should own 51% of the company. Look at the merits and disadvantages of both zones before choosing one for your business. 

3. Seek registration of the trade name

Given that your business will be an online store with no physical presence in Dubai, choose a name that is easy to remember. Use your trade name as a domain name. But the domain name you choose should not resemble that of any existing company. 

4. Applying for a license

Once you have decided on the location, you need to get an eCommerce license. A formal application should be submitted to UAE’s Department of Economic Development. You will be charged about AED10, 000 for trade name registration. If you are intending to set it up in the free zone, then a license must be obtained from relevant free zone authorities. The license you get will depend on the nature of the online business you plan to run. 

5. Apply for an approval certificate

This is a certificate that permits you to start an e-commerce business in Dubai. The certificate is not renewable and will be valued for six months. It will allow you to start a business as you wait for a license.

6. Draft an MOA

The memorandum of association explains how you will relate with the person sponsoring the business. However, if you are setting your company in the free zone you can skip this part. 

The last thing you need to do is to set up an office in Dubai. Once it is set, you will be considered a legal entity. You will then be approved and receive a business license within 7 days. It will permit you to launch your eCommerce store in Dubai.